February 2021 - Investor Summit Group

The Ultimate Guide to Microcap Investing

When people talk about the stock market, you will often hear them quote the S&P 500 and the Dow Jones Industrial Average. These are two large indexes that account for many of the largest companies in the United States (and for that matter, the world). But while investing in these stable indexes typically perform well (averaging about 10 percent annualized ROI), they are really just the tip of the much larger investment iceberg and ignore the microcap market.

Microcap stocks are stocks that have a market capitalization between 50 million USD and 300 million USD. These companies are a bit larger than nanocap stocks (microcap less than 50 million USD), but smaller than other publicly traded companies, including all the companies appearing on the major indexes mentioned above.>